Creating a Profitable PPC Agency; How to Price Your Services

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Creating a Profitable PPC Agency;How to Price Your ServicesELLIOTT REID & ERIN SAGINJanuary 21, 2016

Copyright 2015 WordStream, Inc. All rights reserved.

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www.wordstream.com/learn

Want to get smart in paid search?

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Join the conversation on Twitter

@WordStream@erinsagin@elliottpreid

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LET’S GET TO KNOW YOU

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Tell us a little about yourselves…

• I’m contemplating starting a digital marketing agency

• I’m in the process of starting a digital marketing agency

• I currently offer PPC and am considering revamping my pricing models

• I currently offer other services and am considering adding PPC

• I like my pricing model and just want to know what others are doing

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Meet Your Presenters

Erin Sagin• PPC Evangelist &Community

Manager at WordStream• Has specialized in Paid Search

for 4+ years• Named one of the top 25 Most

Influential PPC Experts by PPC Hero

Elliott Reid• Agency Sales Team Manager• 3+ years helping agencies &

advertisers acquire new clients

• 2 years coaching/managing a team of 8 to help agencies manage PPC accounts

• Has worked with agencies of all sizes

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Picking a Pricing Model

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Disclaimer!• Picking a pricing model for your agency is

a lot like managing a PPC account.

The more specific to your needs the better!

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Pricing Model #1: Hourly Rate

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Pricing Model #2: Fixed Rate

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Pricing Model #3: Percent of Spend

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Pricing Model #4: Performance-Based

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Pricing Model #5: Service Menu

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We’re Big Fans of Combos

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The Numbers Game

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Where Are Your Prospects?

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Factor In Your Operating Costs

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Other Considerations

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Should I Publicize My Pricing?

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What Is the Recommended Contract Length?

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Who Owns the AdWords Account?

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Putting It All Together• Hourly

– Pros• Great way to get customers in the doors

– Cons• Can’t scale• Conflict of interest

• Fixed Rate– Pros

• Simple, good for consistent budgets– Cons

• Disincentives you to grow

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Putting It All Together• % of Spend

– Pros• Great way to grow

– Cons• Does not always work with low spend

accounts• Performance Based

– Pros• Will motivate you to work the account

– Cons• Account work does not immediately/evenly

translate into performance

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Putting It All Together• Service Menu

– Pros• Appeals to many customer types

– Cons• Complex

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Special Offer• Live account assessment with a

WordStream PPC expert

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Questions?

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